<B>Deinked Grades Drops in June</B>

Market conditions for the deinking grades, notably ledger, office pack and coated book, continue to soften, albeit slightly. Movement is still good, although a number of vendors feel that much of the recent decline is due more to the backing off of prices after a strong run up this spring.

According to a number of paper stock dealers, sorted white ledger prices look to decline by $10 a ton this month. SWL prices still are significantly higher than early this year, despite two months of price declines.

Along with continued pressure by a number of domestic mills to paying more for the fiber, a number of offshore buyers are cutting their orders in hope of lowering prices for the raw material.

Although deinking grades are coming down in price pulp prices continue to strengthen. The most recent reports forecast further pulp price increases. Over the past several weeks a number of the largest pulp producers announced plans to hike their prices the first of this month.

Reflecting the increase, pulp substitute prices continue to improve, with demand helping keep most of the grades in strong demand.

Along with pulp substitutes, boxboard cuttings have been one of the strongest grades over the past month. The grade is being used by many mills as an extender.

With the strength being seen in the grade, many vendors expect to see the deinking grades start to turn in the near future. Although prices for many of these grades are off by $50 a ton or more at the mill over the past several months, the continued strength in other grades could help turn many of these prices.